Comments on: Dow “bottom rally” puny thus far!; IBD100 and other growth stocks at new highs; I’m bullish for now

By: Giuse

Giuse — Tue, 07 Apr 2009 13:34:18 +0000

Fine and dandy your comparison with 1932 data. But the past is not the key to the present nor to the future simply because the market dynamics are different today.

By: Dr. Wish

Dr. Wish — Mon, 06 Apr 2009 14:45:33 +0000

I agree that it will take a long time for the 30 week average to reverse up. The GMI is a combination of long and short term indicators and will not rise to 6 quickly. I use the GMI to guide me in my extra conservative university pension money. The GMI has to be very strong for me to go back into the market with that money. However, in my IRA trading account, I begin to enter the market when the indexes, especially QQQQ, are above their 10 week averages, like now.

By: Frank Prevost

Frank Prevost — Mon, 06 Apr 2009 11:32:17 +0000

I pay for 2 services that I read only sparodically but I read your blog every day. Looking at the GMI index for the last few months has made me convinced that with a market that has pulled back this far your first and second GMI indicator won’t go positive until we trade in the current range for another 4 to 6 months or the DOW starts to trade in the 10,000 range. There are just to many stocks which are deeply depressed to be making 100 52 week highs day after day. Of course with the market trading in this range the 200 day moving average wont’ turn positive for another 4 months either.
Frank Prevost